Talwalkars Better Value Fitness Limited reported a net loss of ₹512.50 lakh for the quarter ended June 30, 2024, as the company continued to face operational suspensions during its insolvency proceedings. Revenue from operations stood at nil for the period, while total expenses amounted to ₹512.50 lakh, driven primarily by depreciation and amortization costs of ₹512.50 lakh. The financial results, which have been reconstructed on a best-effort basis, were reviewed by the Audit Committee and approved by the Board of Directors on May 30, 2026.

The company underwent significant structural changes during the historical period covered by these results. Following the initiation of the Corporate Insolvency Resolution Process (CIRP) in January 2021 and subsequent liquidation orders in April 2022, the company's operational activities were suspended. Control was transferred from the erstwhile management to the Resolution Professional and then the Liquidator. The company was subsequently sold as a going concern via e-auction, with the Sale Certificate issued on January 23, 2025, and control transferred to the Successful Bidder on November 7, 2024.

S K Bhavsar & Co., Chartered Accountants, issued a disclaimer of conclusion on the unaudited standalone financial results. The auditor stated that the current management, which acquired the company, did not have access to complete books of accounts, original vouchers, or underlying servers for the historical period. Consequently, the auditor was unable to conduct physical verification of fixed assets and inventories, ascertain potential impairment under Ind AS 36, or independently verify historical balances of trade receivables, cash and bank balances, and statutory dues.

The financial impact of the shifting bases of accounting during the CIRP and liquidation phases could not be evaluated due to the absence of comprehensive records. The auditor also noted an inability to ascertain the completeness and accuracy of provisions for taxation, employee benefits, and contingent liabilities. Given these pervasive scope limitations, the auditor expressed no conclusion on the statement of profit and loss, the statement of assets and liabilities, and the cash flow statement.

An emphasis of matter paragraph in the auditor's report highlights the National Company Law Tribunal (NCLT) Order dated February 26, 2026. Pursuant to this order, all pre-transfer dues and liabilities have been permanently extinguished, and the existing equity share capital stands cancelled. Consequently, the company has adopted Fresh Start Accounting effective from the Transfer Date of November 7, 2024. The reconstituted Board of Directors has assessed the going concern status and deemed it appropriate for the preparation of financial results from the quarter ended December 31, 2024, onwards.

Financial Results for Q1FY25

Talwalkars Better Value Fitness Limited reported a net loss of ₹1,153.10 lakh for the quarter ended March 31, 2024, as the company continues to navigate the aftermath of its Corporate Insolvency Resolution Process (CIRP) and subsequent acquisition. The financial results, which show zero revenue from operations, were reconstructed by the newly reconstituted management on a best-effort basis due to the non-availability of primary books of accounts and original vouchers from the historical period under review. The independent auditor has issued a disclaimer of opinion on these standalone financial results, citing pervasive scope limitations that prevented the verification of assets, liabilities, and statutory dues.

Auditor Disclaimer and Data Limitations

S K Bhavsar & Co., the statutory auditor, stated in its review report dated May 30, 2026, that it was unable to conduct physical verification of fixed assets and inventories or ascertain potential impairment under Ind AS 36. The firm noted that the current management, which acquired the company via a Sale Certificate dated January 23, 2025, lacked access to underlying IT servers and comprehensive records. Consequently, the auditor could not independently verify trade receivables, cash and bank balances, loans, advances, trade payables, borrowings, or statutory dues. The report also highlighted the inability to evaluate the financial impact of shifting accounting bases during the CIRP and liquidation phases or confirm the accuracy of provisions for taxation and employee benefits.

Financial Performance for Q4FY24

The statement of audited standalone financial results reveals a total expense of ₹1,228.90 lakh for the quarter, driven primarily by depreciation and amortisation expenses of ₹815.60 lakh and liquidation expenses of ₹412.87 lakh. Other income for the period stood at ₹75.80 lakh, contributing to a total net revenue of ₹75.80 lakh. The company reported a basic and diluted loss per share of ₹0.37 for the quarter. For the year ended March 31, 2024, the net loss widened to ₹3,677.70 lakh, with total expenses for the year amounting to ₹3,753.50 lakh.

Balance Sheet and Cash Flow

The audited statement of assets and liabilities as of March 31, 2024, shows total assets at ₹30,256.96 lakh, a decrease from ₹36,403.55 lakh in the previous year. Non-current assets declined to ₹25,951.07 lakh from ₹31,981.62 lakh, primarily due to a reduction in property, plant, and equipment. Equity and liabilities stood at ₹30,256.96 lakh, with equity share capital recorded at ₹3,100.49 lakh. The cash flow statement for the year ended March 31, 2024, indicates a net decrease in cash and cash equivalents of ₹122.64 lakh, bringing the closing balance to ₹3,074.78 lakh.

Regulatory Background and Fresh Start Accounting

The company underwent CIRP initiated on January 11, 2021, followed by liquidation proceedings ordered by the Hon'ble NCLT, Mumbai Bench, on April 28, 2022. Operational activities were suspended during this period. The company was subsequently sold as a going concern, with control transferred to the Successful Bidder on November 7, 2024. Pursuant to an NCLT Order dated February 26, 2026, all pre-transfer dues and liabilities have been permanently extinguished, and the existing equity share capital stands cancelled. Consequently, the company has adopted Fresh Start Accounting effective from the Transfer Date of November 7, 2024. The Board of Directors approved these financial results on May 30, 2026.